Cement: BUA Outperforms Dangote As Company Increases Market Share
Dangote Cement Plc, owned by Africa’s richest man, Aliko Dangote’s sales revenue dropped 1.5 per cent from N413bn recorded in March last year to N406.7bn in the first quarter of 2023.
But BUA Cement Plc that is a major competitor outperformed in sales of cement with revenue growing to 9.6 per cent to N106.3bn in March, from N96.98bn posted in same period of 2022.
Dangote is Nigeria’s most capitalized cement maker with N4.6trn while BUA enjoys the second spot with N3.13trn capitalization.
Based on data analysed from their unaudited financial statements, production volume of Dangote dropped to 6,340,000 tonnes in March from 7,091,000 tonnes in March 2022.
Consequently, sales revenue dropped from cement and clinker dropped to N406.7bn, from N413.18bn in March 2022.
However, Dangote’s profit after tax rose to N109.5bn in March 2023 from the N105.9bn recorded in the corresponding quarter of 2022.
But BUA witnessed a drop in its profit from N33.1bn to N26.8bn in March 2022 and March 2023 respectively.
BUA’s net assets rose to N437.9bn in March compared to the N411.1bn in March 2022.
Meanwhile Dangote’s net assets rose from N1.07trn in March 2022 to N1.18trn in 2023.
The heat on Dangote’s revenue may also be linked to the cash scarcity induced by the Central Bank of Nigeria’s naira redesign policy.
The CBN had in October 2022 announced the redesign of old N1,000, N500 and N200 notes and announced the withdrawal of the old notes.
The CBN had withdrawn over N2trn from the system leading to cash crunch in Africa’s biggest economy.
Asides Dangote, other companies like Nigerian Breweries Plc revenue decline from N137.7bn in March 2022 to N123.3bn in 2023.
UAC Nigeria Plc also witnessed the heat as revenue dropped from 27.7bn in March 2022 to N24.6bn in 2023.